Hyundai Motor India Q2FY27 Results: Profit Drops 24% Despite Higher Revenue

Hyundai Motor India Ltd is expanding its manufacturing platform and preparing for new model launches after a supplier-linked production disruption affected the June quarter. The passenger vehicle maker reported consolidated profit after Tax (PAT) of Rs 1,196.16 crore for the quarter ended September 30, 2026, down 23.9 per cent YoY, even as revenue growth accelerated.

Revenue from operations rose 18.5 per cent YoY to Rs 20,696.06 crore, while total income increased to Rs 20,920.02 crore. Profit before tax (PBT) fell 23.9 per cent to Rs 1,617.83 crore, indicating that cost inflation outpaced revenue growth during the quarter.

Total expenses increased 24 per cent YoY to Rs 19,302.18 crore. Material costs rose 29.1 per cent to Rs 15,730.91 crore, while employee costs increased to Rs 752.26 crore and other expenses rose to Rs 2,700.92 crore. The higher cost base reduced the consolidated PAT margin to about 5.8 per cent from about 9 per cent a year earlier. Earnings per share (EPS) stood at Rs 14.72, compared with Rs 19.35 in the September 2025 quarter.

Sequentially, performance improved from the June quarter. PAT rose from Rs 888.62 crore and revenue increased from Rs 16,334.63 crore, reflecting a recovery in production and sales after the earlier disruption. For the first half ended September 30, revenue from operations increased 9.3 per cent YoY to Rs 37,030.69 crore, although PAT declined 29.1 per cent to Rs 2,084.79 crore.

Capital expenditure remained elevated. Capital work in progress, which represents projects under development, rose to Rs 2,676.05 crore as of September 30 from Rs 725.30 crore at March-end. The group spent Rs 2,380.50 crore on property, plant, equipment and intangible assets in the first half. Cash and cash equivalents declined to Rs 4,132.21 crore from Rs 8,711.67 crore at March-end, while Dividend payments during the period totalled Rs 1,706.34 crore. The board approved the results on October 28, 2026.

As of 2:50 pm on October 28, 2026, Hyundai Motor India shares were trading at Rs 1,890.20, up 1.95 per cent from the previous close. The stock was about 22.5 per cent below its 52-week high of Rs 2,438.70, while remaining above the 52-week low of Rs 1,694.70. Over the past year, the shares have declined 23.12 per cent, compared with a 9.01 per cent fall in the BSE 500 over the same period.

What This Means for Investors

The September-quarter recovery over June shows that Hyundai has regained some operating momentum after the supplier-related disruption, but the YoY comparison underlines the pressure on profitability. Revenue growth was strong, yet material costs grew faster and weighed on margins. The rise in capital work in progress also points to continued spending on capacity and product plans, including the Pune ramp-up, which could support volumes and operating leverage once utilisation improves.

The investment picture remains mixed. The company has a sizeable cash position and low borrowings relative to its balance sheet scale, but operating cash generation fell in the first half as capital spending and dividends absorbed liquidity. At 30.43 times trailing 12-month earnings, the valuation places importance on a sustained recovery in volumes and margins. The central execution test is whether new launches, better factory utilisation and export normalisation can offset raw-material inflation and rising operating costs.

Disclaimer: The article is for informational purposes only and not investment advice.